Correlation Between Coca Cola and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Getty Realty at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Coca Cola and Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Getty Realty, you can compare the effects of market volatilities on Coca Cola and Getty Realty and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Coca Cola with a short position of Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Getty Realty.
Diversification Opportunities for Coca Cola and Getty Realty
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Getty is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty and Coca Cola is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Coca Cola are associated (or correlated) with Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of Coca Cola i.e., Coca Cola and Getty Realty go up and down completely randomly.
Pair Corralation between Coca Cola and Getty Realty
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 1.46 times less return on investment than Getty Realty. But when comparing it to its historical volatility, The Coca Cola is 1.57 times less risky than Getty Realty. It trades about 0.08 of its potential returns per unit of risk. Getty Realty is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,642 in Getty Realty on September 1, 2024 and sell it today you would earn a total of 646.00 from holding Getty Realty or generate 24.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Getty Realty
Performance |
| Timeline |
| Coca Cola |
| Getty Realty |
Coca Cola and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Getty Realty
The main advantage of trading using opposite Coca Cola and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Getty Realty can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Getty Realty will offset losses from the drop in Getty Realty's long position.| Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Embotelladora Andina SA | Coca Cola vs. National Beverage Corp | Coca Cola vs. Embotelladora Andina SA |
| Getty Realty vs. Federal Realty Investment | Getty Realty vs. National Retail Properties | Getty Realty vs. Kimco Realty | Getty Realty vs. Simon Property Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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